CA Final · Indirect Tax Laws · Foreign Trade Policy
Rohan Traders Pvt Ltd imported goods worth ₹8,00,000 in breach of the Foreign Trade Policy. The Adjudicating Authority proceeds under Section 11(2) of the FT(D&R) Act, 1992. What is the maximum penalty prescribed on these goods?
The maximum penalty is ₹40,00,000. Section 11(2) prescribes a penalty from ₹10,000 up to five times the value of the goods involved, whichever is more, and five times ₹8,00,000 equals ₹40,00,000.
- A₹10,000
- B₹8,00,000
- C₹40,00,000Correct
- D₹80,00,000
Explanation
The penalty is not less than ₹10,000 and up to five times the value of the goods, whichever is more. Five times ₹8,00,000 is ₹40,00,000. Option ₹8,00,000 wrongly uses one times the value.
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